FRIDAY, 10.30AM
THREE of the four major Johannesburg Stock Echange indices fell on Thursday, with financials the only shares to experience a small rise.
Even the fall of bond yields to a new 17-month low was unable to give industrial shares a boost. As overseas investors leapt back in to the local market and local institutions continued buying, the benchmark government R150 long bond tested 14% for the second day running, getting as low as 14,02% before closing at 14,04%.
The strength of bonds helped the rand, which gaiuned half a cent against the dollar to close at R4,56. The rand also gained more than a cent against the deutschmark to hit a new 17-month high against the German currency.
As the bullion price fell further, closing at $322,25/oz from Wednesday’s $324,75, the JSE’s gold index shed another 30 points (3%) to 953, while industrials lost six points to 9 026, together pulling the all share index down 20 points to 7 427. The financial index was the only one to show a slight gain, climbing 11 points to 10 418.
Markets are treading water, waiting for an interest rate cut, which is expected to be imminent. Delayed trade figures and next week’s inflation, money supply and credit extension data are also affecting the markets.